Interim / Quarterly Report • Aug 14, 2013
Interim / Quarterly Report
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| Q2 6 months (Apr–Jun) (Jan–Jun) |
Full year |
||||
|---|---|---|---|---|---|
| 2013 | 2012 | 2013 | 2012 | 2012 | |
| Total income, | |||||
| SEK million | 118.8 | 144.0 | 246.7 | 281.3 | 543.4 |
| EBITDA, SEK million | 38.8 | 60.6 | 90.0 | 122.4 | 228.4 |
| Operating result | |||||
| before impairment, SEK million |
2.5 | 22.1 | 18.2 | 46.7 | 77.5 |
| Impairment, | |||||
| SEK million | 0.0 | –411.0 | 0.0 | –411.0 | –411.0 |
| Operating result | |||||
| after impairment, | |||||
| SEK million | 2.5 | –388.9 | 18.2 | –364.3 | –333.5 |
| Result after tax, SEK million |
–6.2 | –393.7 | 1.4 | –373.1 | –356.0 |
| Result per share, SEK –0.13 | –8.25 | 0.03 | –7.82 | –7.46 | |
| EBITDA, USD million | 5.9 | 8.7 | 13.9 | 17.9 | 33.7 |
| Available liquid funds1), SEK million |
384.6 | 621.5 | 384.6 | 621.5 | 484.0 |
1) Including unutilised available credit facilities.
By scanning the QR code on the left, you can watch Hans Norén present the report for Q2 2013 on your mobile.
Concordia Maritime is an international tanker shipping company. Our focus is on cost-effective and safe transportation of refined petroleum products and vegetable oils. The company's B shares were admitted to trading on Nasdaq OMX Stockholm in 1984.
To provide our customers with safe and cost-efficient tanker transportation based on innovation and performance.
To be our customers' first choice for safe, innovative and efficient tanker transportation, which will result in good profitability, steady growth and financial stability.
Our customers include some of the world's largest oil and energy companies. Customer relations are characterised by partnership, cooperation and a long-term perspective.
Our main focus is on the transportation of refined petroleum products and vegetable oils. As a complement to this focus, we are also active in the transportation of crude oil.
Our business and income model consists of providing vessels to customers in need of safe and cost-efficient transportation of oil and petroleum products. Income is generated mainly by chartering out vessels (spot market or time charters), profit-sharing clauses in charters and the sale of ships.
With an increasing proportion of Concordia Maritime's fleet employed on the open market, our results are also increasingly affected by short-term fluctuations in freight rates. After a relatively strong first quarter, which generated approx. USD 16,000 per day for our open market vessels, the corresponding income for the second quarter was approx. USD 13,000 and this was the reason for the decline in earnings. Result after tax was SEK –6.2 million (SEK 7.6 million for Q1). Cash flow from operations (EBITDA) was SEK 38.8 million (SEK 51.2 million for Q1).
In the last interim report, we signalled that the stronger market in the first months of the year might be of a seasonal nature, without a real foundation, and this proved to be the case. The total utilisation rate for the global product tanker fleet is still not high enough. This creates, in particular, imbalances in tonnage supply and considerable geographical disparities in freight rates at times.
The flows and the dynamics we previously HAVE described are still there and WE SEE continuous signs of growth "
Concordia Maritime has, for example, seen the few vessels in the fleet that are employed in the Asia region generating a very poor level of income, while the Atlantic market has generally been much stronger. When the global fleet's utilisation rate increases, these differences will decrease and the overall market will strengthen.
Our long-term view of the market remains unchanged. The flows and the dynamics we previously have described are still there and we see continuous signs of ton-mile growth for product tanker transportation. We maintain the view that when we come to do the calculations for 2013, it will be a couple of notches better than 2012. Despite the market decline in the second quarter, the spot market's first six months of 2013 were better than the same period in 2012, and a certain strengthening has been noted during the start of the third quarter.
In the third quarter, we are taking redelivery of another vessel, Stena Penguin, from a time-charter contract. This will mean that eight of our ten P-MAX tankers are employed on the open market.
Our suezmax tanker Stena Supreme continues to be employed on the open market via the Stena-controlled Stena Sonangol Suezmax Pool. Income was slightly lower in the second quarter, at approx. USD 16,000 per day, compared with USD 17,000 per day in the first quarter. However, this is very good in what is a very challenging market for crude oil transportation. The suezmax freight market has strengthened significantly since the end of July, driven mainly by increased exports from West Africa to the United States.
As mentioned in previous reports, the vessel Stena Primorsk had a grounding in the Hudson River in December 2012, while employed under a recently initiated time charter. There was no injury or damage to people or the environment, although the vessel's outer hull was damaged. We concluded that it was not safe for the vessel to continue operating in this shipping channel and the customer was duly informed. In April the customer prematurely cancelled the time charter party and redelivered the vessel.
The customer has decided to claim a large amount (approx. USD 25 million) from the vessel owner for the economic damage they say they have incurred and in July requested that the matter be settled by arbitration in the United States. We denied liability and are preparing for the arbitration.
All of our vessels operated well and without incidents during the second quarter. Our fleet currently consists of 13 safe, efficient and flexible vessels; half of our ten P-MAX tankers have been upgraded to allow transportation of vegetable oils.
Seven of our ten P-MAX tankers were employed on the open market during the second quarter. The vessels operated well and we achieved good results in all of the vetting inspections, which are the oil companies' own monitoring tools to guarantee the quality of their suppliers. Our own targets were achieved by a good margin. This is a direct result of the extensive safety and environmental work that is carried out every day on all of our ships.
We do not have any scheduled drydocking involving lost income days in 2013.
The two panamax tankers Stena Poseidon and Palva, which Concordia Maritime owns in a joint venture with Neste Shipping, have continued to be employed primarily in transatlantic traffic during their time-charter contracts with Neste Oil. During the second quarter, Palva underwent a change of pipelines to the ballast tanks, resulting in a loss of just over 14 income days in connection with the repair. The present contracts for the vessels run until the beginning of 2017.
Like the other vessels in the fleet, our suezmax tanker Stena Supreme had a very good first half of the year in operational terms. However, the market for crude oil transportation continues to be weak. Income for the second quarter in the Stena Sonangol Suezmax Pool, where our tanker is employed on the open market, was USD 15,800 per day, which is slightly lower than the previous quarter.
The Pool, which consists of about 30 modern, efficient suezmax tankers, is controlled by Stena Bulk and the Angolan state oil company Sonangol.
The newbuilding program consisting of two 50,000 dwt product tankers that we ordered in June 2012 is proceeding according to plan. In early July, the second instalment was paid to the shipyard as the project entered the first part of the construction phase.
The vessels are part of a series being designed with Stena Bulk and Stena Weco, and they are being developed in collaboration between Stena Teknik and Guangzhou Shipyard International in China. The concept is called IMO2MAX, which indicates that they are IMO 2 vessels. Concordia Maritime's two vessels in the series will be named Stena Image and Stena Important.
When the tankers are delivered in late 2014/early 2015, they will be among the most sophisticated in the market and at the forefront in terms of both energy efficiency and cargo flexibility.
| Key ratios | 6 months (Jan–Jun) | Full year | ||
|---|---|---|---|---|
| 2013 | 2012 | 2012 | ||
| EBITDA, SEK million | 90.0 | 122.4 | 228.4 | |
| Operating result before impairment, SEK million |
18.2 | 46.7 | 77.5 | |
| Impairment, SEK million | 0.0 | –411.0 | –411.01) | |
| Operating result after impairment, SEK million |
18.2 | –364.3 | –333.5 | |
| Result after tax, SEK million |
1.4 | –373.1 | –356.0 | |
| Available liquid funds, including unutilised credit facilities, SEK million |
387.3 | 621.5 | 484.0 | |
| Result per share after tax, SEK |
0.03 | –7.82 | –7.46 | |
| EBITDA per share, SEK | 1.88 | 2.56 | 4.8 | |
| Dividend per share, SEK | 0.502) | |||
| Equity per share, SEK | 28.52 | 28.68 | 27.88 | |
| Equity ratio, % | 38 | 37 | 38 | |
| Growth in equity, % | 2 | –23 | –25 | |
| Return on equity, % | 0 | –24 | –23 |
The chart illustrates development of the spot and time charter markets and Concordia Maritime's income for vessels employed in these two markets. The company's income is depicted by green and red lines.
| 1) The impairment loss of USD 60 million was calculated using the average |
|---|
| rate of 6.85 SEK/USD at 30 June 2012 and corresponds to SEK 411.0 million. |
| 2)Refers to dividend per share in May 2013. |
| USD millions | Q2 2013 |
Q1 2013 |
Q4 2012 |
Q3 2012 |
Q2 2012 |
Q1 2012 |
Q4 2011 |
Q3 2011 |
|---|---|---|---|---|---|---|---|---|
| P-MAX, timecharter1) | 3.5 | 4.9 | 5.95) | 7.05) | 6.35) | 8.7 | 8.8 | 11.23) |
| P-MAX, spot | 1.7 | 2.4 | 1.8 | 0.3 | 2.5 | 0.5 | –0.8 | –0.5 |
| Panamax | 1.4 | 1.3 | 1.1 | 1.0 | 1.0 | 1.2 | 0.8 | 1.2 |
| Suezmax | 0.6 | 0.7 | 0.4 | 0.8 | — | — | — | — |
| Admin. and other | –1.3 | –1.3 | –1.2 | –1.3 | –1.1 | –1.2 | 0.24) | –1.0 |
| Total | 5.92) | 8.02) | 8.02) | 7.82) | 8.72) | 9.22) | 9.0 | 10.9 |
1) 0% of accumulated income is attributable to profit sharing.
2) The company reports depreciation of drydock as an operating cost.
This is SEK 4.3 million for Q1 2013 and SEK 4.8 million for Q2 2013. 3) Includes one-time payment of USD 2.3 million for redelivery of Stena Provence.
4) Includes one-time payment of USD 1.9 million on conclusion of insurance case relating to V-MAX tanker.
5) For quarter 4, 2012, includes insurance payment of USD 0.2 million. One-time payment of USD 1.0 million (Q2 and Q3 2012) and USD 0.3 million (Q4 2012) for redelivery of Stena Primorsk and Stena President.
After the strong winter season at the beginning of the year, freight rates on the open market unsurprisingly fell to an average of USD 12,300 per day in the second quarter. Demand for transportation of petroleum products was very uneven. US exports of petroleum products, particularly to South America but also to other parts of the world, remained high. Considerable cargoes also left Europe for South America, where emerging economies are driving demand for refined petroleum products.
The suezmax market also weakened during the second quarter. Like other large tanker segments, the market for suezmax tankers was under pressure. In the first six months of
the year, average freight rates on the open market were USD 12,200 per day, which is 42 percent lower than in the same period the previous year. Average freight rates during the second quarter were USD 11,500 per day.
Newbuilding prices for ships have experienced a falling trend over the past decade and current price levels for both product tankers and suezmax tankers are at their lowest in more than ten years. At the end of the second quarter of 2013, newbuilding prices for product tankers were approx. USD 33 million and for suezmax tankers approx. USD 56 million. This is a slight increase compared with the end of 2012/beginning of 2013.
Time charter
1) The charts show the average value per month on a strictly round trip basis. Source: Fearnleys 2) The charts show the value at the end of each period. Source: Clarkson
Equity per share was SEK 28.52 (28.68).
The parent company's functional currency is SEK, although the majority of the transactions in the Group are in USD. The Group's result is generated in USD, which means the result in SEK is a direct function of the SEK/USD exchange rate trend. In August 2012, the Board of Concordia Maritime decided to terminate the equity hedge that represented approx. 50 percent of equity in foreign subsidiaries (corresponding to USD 125 million).
The accumulated exchange differences including the effects of forward contracts, which are recognised in equity, amounted to SEK 80.2 (97.8) million. The changes are recognised in equity through OCI.
The company has entered into interest rate swaps totalling USD 124 million to protect itself against interest rate fluctuations. They are structured to cover approx. 50 percent of anticipated future borrowing within existing credit facilities and a large proportion of them do not expire until 2015. At the end of the second quarter, the value of these contracts
was SEK –28.4 (–44.9) million, which is recognised in the hedging reserve through OCI.
Since 2011, financial investments in NOK have been hedged by NOK/USD foreign exchange forward contracts in order to make them currency-neutral. Hedging was previously used, with the change in value of the forward contract being recognised in the hedging reserve through OCI. In the fourth quarter of 2012, the Group stopped using hedge accounting for currency risks, and the changes in value of the forward contracts are now recognised in the income statement. At the end of the period, the total hedging reserve stood at SEK –31.8 (–43.4) million.
Investments during the period January to June amounted to SEK 7.1 (328.8) million and relate to advance payments for two tankers, with delivery of the first of these scheduled for the end of 2014.
The Group's assets are assessed on a six-monthly basis to determine whether there is any indication of impairment.
| Quarter 2 | 6 months | |||
|---|---|---|---|---|
| SEK millions | 2013 | 2012 | 2013 | 2012 |
| Total income | 118.8 | 144.0 | 246.7 | 281.3 |
| Operating result before impairment |
2.5 | 22.1 | 18.2 | 46.7 |
| Operating result after impairment |
2.5 | –388.9 | 18.2 | –364.3 |
| Result after net financial items |
–8.6 | –395.6 | –2.9 | –378.1 |
| Result per share after tax, SEK |
–0.13 | –8.25 | 0.03 | –7.82 |
| SEK millions | 30 June 2013 |
30 June 2012 |
|---|---|---|
| Available liquid funds1) | 384.6 | 621.5 |
| Interest-bearing liabilities | 2,080.8 | 2,130.0 |
| Equity | 1,361.4 | 1368.9 |
| Equity ratio, % | 38 | 37 |
1) Includes unutilised available credit facilities.
The fleet is defined as a cash-generating unit, and an impairment loss is recognised when the carrying amount of an asset or cash generating unit exceeds its recoverable amount. An impairment loss of USD 60 million (SEK 411.0 million) was recognised for the fleet on 30 June 2012. Impairment testing of the asset values at 30 June 2013 did not indicate any impairment. Impairment testing is based on an overall assessment of future earnings, newbuilding prices and average values from three independent ship brokers.
The fact that five of our total fleet of 13 vessels were chartered out on fixed contracts partly counteracts the seasonal variations that can otherwise occur in tanker shipping.
The number of employees in the Group at 30/06/2013 was 400 (400), 395 (394) of whom were seagoing employees.
The bond portfolio is classified under available-for-sale financial assets and is recognised at market value in OCI. At the end of the quarter, bonds were owned in Teekay Offshore, Teekay LNG, Rabobank, Golden Close Maritime, Kungsleden Fastigheter, Wind Acquisition, Bonheur and Svensk Exportkredit. The total value of the bond portfolio was USD 13.9 (13.9) million.
Total short-term investments corresponded to SEK 93.8 (96.1) million. The bond portfolio is recognised at fair value through equity using quoted market prices.
A previous tax provision of USD 1.4 million was reversed during the quarter, as this tax risk no longer exists, while a new provision of USD 1.4 million relating withholding tax in Switzerland was recognised.
The parent company's sales for the second quarter amounted to SEK 0 (0) million. Intragroup invoicing represented SEK 0 (0) million of this amount. The parent company's result after financial items for the second quarter amounted to SEK –24.8 (–15.2) million. The parent company's available liquid funds amounted to SEK 1,641.4 (2,149.8) million, which includes receivables from Group companies in the cash pool and unutilised credit facilities.
In July, the vessel owner received a demand for arbitration for the damage the customer believes that the vessel owner has caused them in connection with the Stena Primorsk's grounding in the Hudson River in December 2012 and the vessel owner's decision not to permit the vessel to operate in this shipping channel. In July 2013, the customer requested that the matter be settled by arbitration in the United States. The vessel owner strongly rejects the claim of approx. USD 25 million and is preparing for the arbitration.
As a result of SEK/USD exchange rate movements in 2012, the company's profit in SEK has changed, while profit in USD remains unchanged.
Concordia Maritime has a small internal organisation, and purchases services from related-party companies in the Stena Sphere, which include Stena Bulk. The latter company conducts tanker business which competes with Concordia Maritime in some respects. Accordingly, there is an agreement, entered into many years ago, which regulates the relationship between the two companies with respect to new business. Under the terms of this agreement, Concordia Maritime has the right to opt for 0, 50 or 100 percent participation in each new transaction.
At the beginning of April 2011, Stena Bulk started a 50-50 joint venture together with the Danish company Weco, resulting in a newly established company, Stena Weco. Stena Weco specialises mainly in the transportation of vegetable oils.
Under a new agreement with Stena Bulk, Concordia Maritime is entitled to the financial result arising from vessels that may from time to time be chartered in by Stena Weco for a period of more than one year, should Concordia Maritime decide to participate in such charters. Other business generated by Stena Weco is not available to Concordia Maritime.
Concordia Maritime purchases services on a regular basis from the Stena Sphere in the following areas:
All related party transactions are conducted on commercial terms and at market-related prices.
Concordia Maritime is exposed to various types of risks. The main market-related factors affecting the company include the general economy, freight rates, oil prices and political factors. Risks related to operational activities include ship management, insurance and employees. Concordia Maritime is also exposed to credit and financial risks.
The management and the board work actively to minimise risk exposure and to minimise the consequences and effects of a risk nevertheless materialising.
Further information can be found in the 2012 annual report.
| Type of risk | |||
|---|---|---|---|
| 1. Corporate risks | A Brand |
||
| B Employees |
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| CLiquidity | |||
| D Financing risk |
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| 2. Market-related risks |
A Economic trend |
||
| B Freight rates | |||
| C Oil price |
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| D Political risk |
|||
| E War and instability |
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| 3. Operational | A Ship operation and insurance |
||
| risks | B Environment |
||
| 4. Credit risks | A Counterparty risks – customer |
||
| BCounterparty risks – shipyards and partners |
| SEK millions | Quarter 2 2013 Quarter 2 2012 6 months 2013 | 6 months 2012 | Full year 2012 | ||
|---|---|---|---|---|---|
| CONSOLIDATED INCOME STATEMENT | |||||
| Average exchange rate SEK/USD | 6.56 | 6.95 | 6.50 | 6.85 | 6.78 |
| Time charter income | 53.4 | 103.1 | 129.0 | 223.0 | 411.3 |
| Spot charter income | 65.4 | 40.9 | 117.7 | 58.3 | 132.1 |
| Total income | 118.8 | 144.0 | 246.7 | 281.3 | 543.4 |
| Operating costs, ships | –35.2 | –37.7 | –68.4 | –71.3 | –139.7 |
| Seagoing personnel costs | –32.9 | –34.6 | –65.8 | –65.7 | –134.2 |
| Other external costs | –8.9 | –9.0 | –15.6 | –15.2 | –26.0 |
| Personnel expenses | –3.0 | –2.1 | –6.9 | –6.7 | –15.1 |
| Depreciation | –36.3 | –38.5 | –71.8 | –75.7 | –150.9 |
| Total operating costs | –116.3 | –121.9 | –228.5 | –234.6 | –465.9 |
| Operating result before impairment | 2.5 | 22.1 | 18.2 | 46.7 | 77.5 |
| Impairment | 0.0 | –411.0 | 0.0 | –411.0 | –411.01) |
| Operating result after impairment | 2.5 | –388.9 | 18.2 | –364.3 | –333.5 |
| Interest and similar income | 1.7 | 3.6 | 4.0 | 8.0 | 12.4 |
| Interest and similar expense | –12.8 | –10.3 | –25.1 | –21.8 | –48.3 |
| Financial net | –11.1 | –6.7 | –21.1 | –13.8 | –35.9 |
| Result after net financial items | –8.6 | –395.6 | –2.9 | –378.1 | –369.4 |
| Tax | 2.4 | 1.9 | 4.3 | 5.0 | 13.4 |
| Net result after tax | –6.2 | –393.7 | 1.4 | –373.1 | –356.0 |
| Other comprehensive income | |||||
| Items that have been, or can be, transferred to result for the period | |||||
| Translation differences | 44.3 | 84.1 | 47.7 | 12.7 | –82.6 |
| Equity hedging | 0.7 | –34.2 | 0.0 | 1.6 | 37.8 |
| Available-for-sale financial assets | –0.6 | –6.0 | –1.9 | –5.3 | 0.5 |
| Cash flow hedges, currency-related | –3.4 | 3.1 | –5.1 | 0.5 | 0.7 |
| Cash flow hedges, interest-related | 5.7 | 2.3 | 10.9 | 3.0 | 9.5 |
| Tax attributable to items that have been, or can be, | |||||
| transferred to result for the period | 1.7 | 6.2 | 1.5 | –0.4 | –9.0 |
| Comprehensive income for the period | 42.2 | –338.2 | 54.5 | –361.0 | –399.1 |
| Per-share data, SEK | |||||
| Number of shares | 47,729,798 | 47,729,798 | 47,729,798 | 47,729,798 | 47,729,798 |
| Result per share, before/after dilution | –0.13 | –8.25 | 0.03 | –7.82 | –7.46 |
| Equity per share, SEK | 28.52 | 28.68 | 28.52 | 28.68 | 27.88 |
| SEK millions | 30 Jun 2013 | 30 Jun 2012 | 31 Dec 2012 |
|---|---|---|---|
| Closing exchange rate SEK/USD | 6.73 | 6.91 | 6.51 |
| Assets | |||
| Ships and equipment | 3,089.6 | 3,287.5 | 3,064.5 |
| Ships under construction | 53.5 | 0.0 | 48.0 |
| Financial assets | 0.0 | 1.8 | 0.0 |
| Total non-current assets | 3,143.1 | 3,289.3 | 3,112.5 |
| Current receivables | 176.0 | 111.3 | 126.7 |
| Short-term investments | 93.8 | 96.1 | 97.1 |
| Cash and bank balances | 162.5 | 184.6 | 144.4 |
| Total current assets | 432.3 | 392.0 | 368.2 |
| Total assets | 3,575.4 | 3,681.3 | 3,480.7 |
| Equity and liabilities | |||
| Equity | 1,361.4 | 1,368.9 | 1,330.8 |
| Non-current liabilities | 2,052.0 | 2,133.7 | 1,979.6 |
| Current liabilities | 162.0 | 178.7 | 170.3 |
| Total equity and liabilities | 3,575.4 | 3,681.3 | 3,480.7 |
| Other | |||||||
|---|---|---|---|---|---|---|---|
| Share | paid-in | Translation | Hedging | Fair value | Retained | ||
| SEK millions | capital | capital | reserve | reserve | reserve | earnings | Total |
| Changes Jan–Jun 2013 | |||||||
| Opening balance 01.01.2013 | 381.8 | 61.9 | 30.6 | –37.2 | 4.7 | 889.0 | 1,330.8 |
| Comprehensive income for the period | 49.6 | 5.4 | –1.9 | 1.4 | 54.5 | ||
| Dividends | –23.9 | –23.9 | |||||
| Closing balance 30.06.2013 | 381.8 | 61.9 | 80.2 | –31.8 | 2.8 | 866.5 | 1,361.4 |
| Changes Jan–Jun 2012 | |||||||
| Opening balance 01.01.2012 | 381.8 | 61.9 | 83.6 | –46.6 | 4.2 | 1,292.7 | 1,777.6 |
| Comprehensive income for the period | 14.2 | 3.2 | –5.3 | –373.1 | –361.0 | ||
| Dividends | –47.7 | –47.7 | |||||
| Closing balance 30.06.2012 | 381.8 | 61.9 | 97.8 | –43.4 | –1.1 | 871.9 | 1,368.9 |
| SEK millions | Quarter 2 2013 | Quarter 2 2012 | 6 months 2013 | 6 months 2012 | Full year 2012 |
|---|---|---|---|---|---|
| Operating activities | |||||
| Result after net financial items | –8.6 | –395.6 | –2.9 | –378.1 | –369.4 |
| Adjustments: | |||||
| Depreciation | 41.0 | 454.7 | 80.8 | 497.2 | 573.2 |
| Result, sale of non-current assets | 0.0 | 0.0 | 0.0 | 0.4 | 0.4 |
| Result, sale of securities | 0.0 | –1.4 | –0.7 | –4.3 | –5.0 |
| Other items | 10.3 | –2.6 | 5.4 | –2.9 | –8.7 |
| Cash flow from operating activities before changes in working capital |
42.7 | 55.1 | 82.6 | 112.3 | 190.5 |
| Changes in working capital | 10.5 | –87.8 | –57.5 | –4.6 | –22.6 |
| Cash flow from operating activities | 53.2 | –32.7 | 25.1 | 107.7 | 167.9 |
| Investing activities | |||||
| Sale of non-current assets | 0.0 | 0.0 | 0.0 | –0.4 | –0.4 |
| Investment in non-current assets | –3.3 | –317.1 | –7.1 | –328.8 | –428.3 |
| Investment in financial assets | –0.3 | –15.4 | –34.2 | –59.2 | –65.8 |
| Sale of financial assets | 0.5 | 18.7 | 35.3 | 71.3 | 75.8 |
| Cash flow from investing activities | –3.1 | –313.8 | –6.0 | –317.1 | –418.7 |
| Financing activities | |||||
| New loans | 99.8 | 378.1 | 99.8 | 419.0 | 815.1 |
| Amortisation of loans | –77.6 | 37.7 | –80.8 | –105.3 | –500.0 |
| Dividend to shareholders | –23.9 | –47.7 | –23.9 | –47.7 | –47.7 |
| Cash flow from financing activities | –1.7 | 368.1 | –4.9 | 266.0 | 267.4 |
| Cash flow for the period | 48.4 | 21.6 | 14.2 | 56.6 | 16.6 |
| Balance at beginning of period (Note 1) | 110.0 | 163.4 | 144.4 | 128.2 | 128.2 |
| Exchange differences (Note 2) | 4.1 | –0.4 | 3.9 | –0.2 | –0.4 |
| Balance at end of period (Note 1) | 162.5 | 184.6 | 162.5 | 184.6 | 144.4 |
| Note 1. Balance consists of cash, bank balances and credit facility |
|||||
| Note 2. Exchange differences attributable to: | |||||
| Cash and cash equivalents at beginning of year | 0.7 | 0.1 | 0.6 | 0.1 | 0.5 |
| Cash flow for the period | 3.4 | –0.5 | 3.3 | –0.3 | –0.9 |
| 4.1 | –0.4 | 3.9 | –0.2 | –0.4 |
| SEK millions | Quarter 2 2013 |
Quarter 1 2013 |
Quarter 4 2012 |
Quarter 3 2012 |
Quarter 2 2012 |
Quarter 1 2012 |
Quarter 4 2011 |
Quarter 3 2011 |
|
|---|---|---|---|---|---|---|---|---|---|
| Profit/loss | |||||||||
| items | Total income | 118.8 | 127.9 | 126.3 | 135.8 | 144.0 | 137.3 | 138.0 | 145.5 |
| Operating costs excluding impairment | –116.3 | –112.2 | –110.7 | –120.6 | –121.9 | –112.7 | –113.7 | –110.8 | |
| Operating result (EBIT) | 2.5 | 15.7 | 15.6 | 15.2 | –388.9 | 24.6 | 24.3 | 34.7 | |
| of which profit/loss on ship sales | |||||||||
| Financial net | –11.1 | –10.0 | –11.0 | –11.1 | –6.7 | –7.1 | –5.0 | –12.9 | |
| Result after financial items | –8.6 | 5.7 | 4.6 | 4.1 | –395.6 | 17.5 | 19.3 | 21.8 | |
| Net result after tax | –6.2 | 7.6 | 9.7 | 7.4 | –393.7 | 20.6 | 25.9 | 20.1 | |
| Cash flow from operating activities | 42.7 | 39.9 | 33.6 | 44.6 | 55.1 | 57.1 | 61.9 | 60.2 | |
| EBITDA | 38.8 | 51.2 | 52.9 | 52.7 | 60.6 | 61.8 | 61.2 | 70.6 | |
| Balance-sheet | |||||||||
| items | Ships (number) | 3,089.6 (12) | 3,028.2 (12) | 3,064.5(12) | 3,105.1 (12) | 3,287.5 (12) | 3,130.4 (11) | 3,291.1 (11) | 3,295.0 (11) |
| Ships under construction (number) | 53.5 (2) | 50.5 (2) | 48.0 (2) | 46.6 (2) | 0 | 142.5 (1) | 143.0 (1) | 138.9 (1) | |
| Liquid funds incl. investments | 256.3 | 204.2 | 241.5 | 230.0 | 280.7 | 265.5 | 241.8 | 163.1 | |
| Other assets | 176.0 | 169.7 | 126.7 | 102.3 | 113.1 | 75.8 | 82.3 | 85.8 | |
| Interest-bearing liabilities | 2,080.8 | 1,992.8 | 1,993.3 | 2,000.8 | 2,130.0 | 1,698.6 | 1,815.4 | 1,777.5 | |
| Other liabilities and provisions | 133.2 | 116.7 | 156.6 | 165.0 | 182.4 | 160.8 | 165.2 | 168.5 | |
| Equity | 1,361.4 | 1,343.1 | 1,330.8 | 1,318.2 | 1,368.9 | 1,754.8 | 1,777.6 | 1,736.8 | |
| Total assets | 3,575.4 | 3,452.6 | 3,480.7 | 3,484.0 | 3,681.3 | 3,614.2 | 3,758.2 | 3,682.8 | |
| Key ratios, % | Equity ratio | 38 | 39 | 38 | 38 | 37 | 49 | 47 | 47 |
| Return on total capital | 0 | 2 | 2 | 2 | –10 | 3 | 3 | 3 | |
| Return on capital employed | 0 | 2 | 2 | 2 | –9 | 3 | 3 | 3 | |
| Return on equity | 0 | 2 | 3 | 2 | –24 | 5 | 5 | 5 | |
| Operating margin | 2 | 12 | 12 | 11 | –270 | 18 | 18 | 24 | |
| Share data | Total income | 2.49 | 2.68 | 2.65 | 2.85 | 3.02 | 2.88 | 2.89 | 3.05 |
| Operating costs excluding impairment | –2.44 | –2.35 | –2.32 | –2.53 | –2.55 | –2.36 | –2.38 | –2.32 | |
| Operating result before impairment | 0.05 | 0.33 | 0.33 | 0.32 | 0.46 | 0.52 | 0.51 | 0.73 | |
| Financial net | –0.23 | –0.21 | –0.23 | –0.23 | –0.14 | –0.15 | –0.10 | –0.27 | |
| Net result after tax | –0.13 | 0.16 | 0.20 | 0.15 | –8.25 | 0.43 | 0.54 | 0.42 | |
| Cash flow | 0.89 | 0.84 | 0.70 | 0.93 | 1.15 | 1.20 | 1.30 | 1.26 | |
| EBITDA | 0.81 | 1.07 | 1.11 | 1.10 | 1.27 | 1.29 | 1.28 | 1.48 | |
| Equity | 28.52 | 28.14 | 27.88 | 27.62 | 28.68 | 36.77 | 37.24 | 36.39 |
Please note that there has been no dilution effect since 2002. Definitions: see page 16
| SEK millions | 6 months 2013 |
6 months 2012 |
|---|---|---|
| Net sales | ||
| Other external costs | –7.1 | –6.4 |
| Personnel expenses | –5.1 | –4.9 |
| Operating result | –12.2 | –11.3 |
| Other interest and similar income | 8.9 | 11.6 |
| Interest and similar expense | –21.5 | –15.5 |
| Result after financial items | –24.8 | –15.2 |
| Tax | 5.4 | 4.0 |
| Result for the period | –19.4 | –11.2 |
| SEK millions | 30 June 2013 |
30 June 2012 |
| Assets | ||
| Ships and equipment | 0.1 | 0.0 |
| Financial assets | 27.7 | 30.6 |
| Investments in Group companies | 745.8 | 745.8 |
| Total non-current assets | 773.6 | 776.4 |
| Current receivables | 9.0 | 14.5 |
| Short-term investments | 0.0 | 1.0 |
| Receivables from Group companies | 1,347.7 | 1,628.1 |
| Cash and bank balances | 71.5 | 84.8 |
| Total current assets | 1,428.2 | 1,728.4 |
| Total assets | 2,201.8 | 2,504.8 |
| Equity and liabilities | ||
|---|---|---|
| Equity | 507.9 | 541.2 |
| Non-current liabilities | 1,690.9 | 1,921.6 |
| Current liabilities | 3.0 | 42.0 |
| Total equity and liabilities | 2,201.8 | 2,504.8 |
| Pledged assets | 67.3 | 69.1 |
| Contingent liabilities2) | 301.5 | 331.7 |
1) With effect from January 2013, the cash pool is classified into cash and bank balances, and receivables from Group companies. The Parent Company previously classified the entire cash pool holding as cash and bank balances. The comparative figures have also been reclassified accordingly.
2) The parent company has also provided a guarantee for a subsidiary, which relates to vessel financing.
The Concordia Maritime Group applies International Financial Reporting Standards (IFRS) as adopted by the EU. The Group applies the same accounting policies and calculation methods in the quarterly reports as in the annual report for 2012, in addition to those described in this report.
The Group's interim report has been prepared in accordance with IAS 34. The report for the Parent Company has been prepared in accordance with the Swedish Annual Accounts Act and RFR recommendations. This report gives a true and fair view of the operations, financial position and performance of the Parent Company and Group, and describes significant risks and uncertainties to which the Group is exposed.
Gothenburg, 14 August 2013
| Carl-Johan Hagman Chairman |
Carl Mikael von Mentzer Deputy Chairman |
Stefan Brocker | Göran Dahlman | Mats Jansson |
|---|---|---|---|---|
| Jörgen Lorén | Michael G:son Löw | Morten Chr. Mo | Dan Sten Olsson | Hans Norén President |
To the Board of Concordia Maritime AB (publ), Corp. ID 556068-5819
I have reviewed the condensed set of financial statements in the interim report for Concordia Maritime AB (publ) for the second quarter and the six months ended 30 June 2013. The Board of Directors and CEO are responsible for the preparation and presentation of this interim financial report in accordance with IAS 34 and the Swedish Annual Accounts Act. My responsibility is to express an opinion on this interim report based on my review.
I conducted my review in accordance with the Swedish Standard on Review Engagements (SÖG) 2410 – Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with ISA and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable me to obtain a level of assurance that would make me aware of all significant matters that might be identified during an audit. Consequently, conclusions based on a review do not have the level of assurance of those based on an audit.
Based on my review, nothing has come to my attention that causes me to believe that the interim financial report has not been prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act for the Group and in accordance with the Swedish Annual Accounts Act for the parent company.
Gothenburg, 14 August 2013
Johan Kratz Authorised Public Accountant
This interim financial report in summary for the Group has been prepared in accordance with IAS 34 Interim Financial Reporting and relevant provisions of the Swedish Annual Accounts Act. The interim report for the parent company has been prepared in accordance with chapter 9 of the Swedish Annual Accounts Act. For the Group and parent company, the same accounting principles and computation methods have been applied as in the most recent annual report.
This information in this report is information that Concordia Maritime is required to disclose in accordance with the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. The information was made public on 14 August 2013, at approx. 2 p.m.
Q3 Interim Report 2013 13 November 2013 2013 Year-end Report 20 February 2014
Hans Norén, President +46 31 85 51 01 or +46 704 85 51 01 hans.noren @ concordiamaritime.com
Anna Forshamn, CFO +46 31 85 51 72 or +46 704 85 51 72 anna.forshamn @ concordiamaritime.com
Cash flow from operating activities Result after net financial items plus depreciation minus tax paid (cash flow before change in working capital and investments and before effect of ship sales).
Return on total capital Result after net financial items plus financial expenses as a percentage of average total assets.
Return on capital employed Result after net financial items plus financial expenses as a percentage of average capital employed. Capital employed refers to total assets minus non-interest-bearing liabilities,including deferred tax liability.
Return on equity Result for the year as a percentage of average equity.
Equity ratio Equity as a percentage of total assets.
Spot charter (open market) Hiring of vessels on a voyage-by-voyage basis.
Time charter Hiring of vessels for a specified period at a fixed rate.
Concordia Maritime 405 19 Gothenburg, Sweden Tel +46 31 85 50 00 Reg. no. 556068-5819 www.concordiamaritime.com
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